Borrowers often have a hard time choosing the right credit card. There are many different offers, and sometimes it isn’t easy to know which one is best. First, this article will discuss five of the most popular credit cards that offer cash-back. Then, we’ll go over what they offer in terms of rates, annual fees, and other features so you can make an informed decision when choosing your next credit card!
What is a cash-back credit card?
It’s a credit card that gives you a rebate, or “cash back,” on certain purchases. Some cash-back cards give you a set percentage of cashback on every purchase, while others offer tiered rewards, giving you more money back on specific categories like gas or groceries.
There are a few things to consider when looking for the best cash-back credit card for your needs. First, think about how you spend your money and where you would most like to earn rewards. Then compare the different cards available to find the one with the best rewards structure for your spending habits. Finally, make sure to pay attention to any annual fees or other restrictions that may apply.
Why is it essential to understand annual fees when choosing a card?
When choosing a credit card, it is vital to understand annual fees. Lenders charge annual Fees, often after the first year of signing up for an account that doesn’t have one associated with it! This cannot be clear because you could initially sign up for something without costs but still get charged annually.
People usually don’t read through all these terms and conditions, so they end up spending money on things they didn’t even know about in the first place. Suppose there is no fee before your contract expires. In that case, this means you won’t need to worry about paying anything extra when it comes time to renew your agreement (although some companies will send out notifications beforehand).
Many people assume that since most cards do not charge membership dues every month, they don’t charge anything, which is not always true. However, annual fees can be pretty high, so it is essential to look into them before signing up for any credit card!
What are the benefits of cash-back schemes?
There are many different benefits when using a cash-back scheme; some people like getting money back on their purchases, and others like to accumulate points that they can use for future purchases.
Banks often offer incentives if you spend a certain amount within the first few months of opening up an account, which is why it’s essential to look at your spending habits and how much money you have available in your bank account at any given time!
Many cards will offer different kinds of rewards depending on what sort of items or services are bought with them; this means that sometimes travel insurance might be included with one card but not another even though they’re from the same issuer! This brings us back to annual fees because companies include freebies when working out who has the best deal overall.
How to apply for a cashback credit card?
To apply for a cash-back credit card, you must have fair credit. If your score is below 650 points in total, it would be difficult to get any loan or line of credit, so you’ll want to pull up your FICO report and improve this number before even applying anywhere else.
Try not to have an outstanding balance on anything as the creditor will lower what they’re willing to offer by judging this figure against how much money is available.
Never spend more than thirty percent of your income toward debt repayment each month, or lenders won’t approve anyone with that high amount owed versus their salary, which can also hurt your chances when trying for another loan later down the road too!
What are the features should borrowers consider before choosing?
Intro balance transfer fee
A balance transfer is when you switch your bank account to a new loan provider. They usually offer lower interest rates than what you currently have. Still, it does mean that the amount of money owed will increase in comparison because of how much time has passed since opening up an original line of credit.
Balance transfers are suitable for people looking to consolidate their existing loans, but they don’t usually have the same benefits when it comes time to pay them back. This means that balance transfers are best for people who know how long it will take before being able to afford to pay off this newly increased debt!
Balance transfer fees can be pretty high, so borrowers should consider whether or not this would be a good idea before signing up for any of these types of cards. Some companies will allow you to transfer the balance over, but it’ll come with an extra cost, so we recommend checking beforehand if this is something that might work out in your favor!
Intro APR on purchases and balance transfers
A low-interest rate can mean that you don’t have to worry about paying back extra fees (interest) if your monthly repayments are made on time.
People usually take out loans for weddings, cars, and home renovations. But it’s important not to forget that many people also use credit cards as a replacement for their debit accounts; this means they can collect points or get their hands on certain types of merchandise that they otherwise wouldn’t have been able to afford!
Intro APRs are offered by companies when you first open up an account with them, but these rates only last for a little while before having to upgrade; this means that most borrowers will need to pay off whatever purchases or balance transfers made within the first six months before the APR is increased!
Intro balance transfer APRs are usually relatively high, so borrowers should consider whether or not this would be a good idea before signing up for any of these types of cards. Additionally, we recommend checking beforehand if this might work out in your favor because sometimes companies will waive off all fees if you pay off a purchase within this time frame!
Intro annual fee on purchases and balance transfers
Annual fees are something that borrowers will have to consider if they’re looking into signing up for credit cards, as these costs might not be included in the loan amount.
Before making any purchase or transfer, it’s important to research whether or not the company you’re dealing with charges for this feature – if they don’t, then it’s usually a good idea to look elsewhere because there might be better offers available!
Intro balance transfer annual fee is something that borrowers should consider before signing up for any of these cards. We recommend checking beforehand if this might work out in your favor because sometimes companies will waive all fees if you pay off a purchase within this time frame!
How do people qualify for these offers?
Many of these cards have a lot going on, so it’s essential to familiarize yourself with the terms and conditions before applying. Your credit score is usually one of the main determining factors in whether or not you get accepted for a particular card, but other things can play a role, too, such as income levels!
You’ll need to provide information like your name, date of birth, social security number (or tax ID), address history over the past two years, monthly salary after taxes & insurance payments (if applicable), and any sources of secondary income like alimony if you’re divorced.
Banks will use this data along with your credit report to assess whether or not they should give you money; we recommend checking out your credit score and report before applying to see if you qualify for anything!
What types of fees are associated with these cards?
There are several fees associated with these cards. For example, late payment fees will typically cost you between $15 and $35 every time a monthly installment is not paid on time.
There can also be penalty APRs that apply if the interest rate goes up due to nonpayment, so it’s easier for lenders to get their money back should something happen!
This means your APR could go from 15% up to 29.99% depending on how much of an impact this has on them financially; keep in mind, though, that most cards have a maximum limit they’re allowed to charge even when taking out loans through other companies like banks or private financial institutions!
What are some options for withdrawing cash with these cards?
They are used to determine whether or not they should issue you a card in the first place! Once your account is live, it’s time to start shopping around for either an offer that stands out above the rest or something that fits into your current lifestyle.
There are many different offers on the market, so here are just five examples of how choosing one can make the difference between having lots of money and spending even more!
When applying, remember there is no such thing as free lunch because most companies will have their terms & conditions that nobody reads through before signing up! Annual Fees vary widely depending on what issuer you’re working with, but everybody has them except when you get yours for free!
How much do the rewards usually cost, and how long does it take to receive them?
There can be a lot of features that borrowers should consider before choosing their next credit card; we’ve only listed some above, but there are also annual percentage rates (APR), grace periods, cash advance limits, foreign transaction costs, and more.
You might think you’re getting something for free when in reality, your bank is charging you interest on anything over $100! This means if you don’t pay off your balance at least once per month, then you could end up spending an awful amount just by making purchases every day. It’s always best to read through all terms and conditions to know what you’re signing up for before applying!
What are some perks of having this card?
One big perk is cash-back. Many companies offer between 0.25% and as much as 50% back on items like groceries, restaurants, online transactions, or anything else they can think of to make your life easier; most cards will also include a credit limit (CL) which means you can spend up to $1000 each month without having any interest added onto your balance.
The best cash-back credit card ultimately depends on your spending habits and preferences. When you earn cash back, your rewards usually show up as a statement credit that can be used to pay your bill or be deposited into your bank account. So every time you use your credit card on eligible purchases, you’ll earn real dollars and cents back. It’s that simple.
This is great for people who struggle to manage their money and need more leeway with how they’re spending it; remember that the higher this number gets, the harder it’s going to be to pay off each month, so it’s best to have a plan ready the moment you sign up!
What are some potential downsides?
One downside is that there can be a limit to usage for cash-back. For example, some cards might only offer this benefit on certain items or during specific months of the year, which means your money could go unclaimed for a while! On the other hand, you also need to take note that most companies have an expiry date for when this benefit expires, so there’s no point in waiting around if you’re planning on using it up.
Another downside can be higher interest rates. Most cards will offer between 12% and 24% APR, which is not the best news but can make a big difference in getting out of debt. Just remember that the majority of cards will have a minimum APR, which means you can spend as little as $100 without having any interest added to your balance!
How do rewards work?
Most companies include an expiry date for their credit card offers; this is especially true for cash-back, which means you need to make sure you’re spending your money somewhere that accepts the card before this date expires.
Rewards can be redeemed in several ways, but depending on whether or not they offer them as “cash” (e.g., PayPal), it might take several months to get through all requirements and receive your money.
In most cases, you’ll have to spend a certain amount of cash-back before being able to use it as currency, so make sure you set aside enough for those purchases, or this could end up causing even more problems!
Here are five of the best cash-back credit cards available right now
The Citi Double Cash Card
It offers one of the highest flat cash-back rates available for rotating bonus categories, giving you two percent cash back on every purchase – no categories or tiers to keep track of. In addition, there is no foreign transaction fee, annual fees, and limits on how much cashback you can earn.
Cardholders can redeem cashback for checks or statement credits once they’ve earned $25 worth of cashback. Plus, if you forget to pay your card, Citi will waive your first late fee.
Citi Double Cash Card is an excellent choice for people who want a simple way to earn cashback on all their purchases. If you’re looking for more flexible rewards, though, you might want to consider one of the other cards on this list.
The Chase Freedom Unlimited Card
This card offers a flat rate of cashback on every purchase, but it also offers a sign-up bonus: you’ll earn three percent cashback on your first $20,000 in spending in the first year, and then one percent after that. There are no annual fees, and like the Citi Double Cash Card, there’s no limit to how much cash back you can earn.
The Chase Freedom Unlimited card is a good choice if you want to rack up rewards quickly, especially if you’re planning on spending a lot in the first year. Just be sure to pay attention to the card’s APR – it can be pretty high if you carry a balance.
Use the Freedom Unlimited card for all your Chase Ultimate Rewards, their premier rewards program that lets you redeem rewards for travel purchases (5% cash-back), dining (3% cash-back), drugstore purchases(3% cash-back), including takeout and eligible delivery service (1.5%) on all other purchases then use the Double Cash for all your other combined purchases to earn an effective 2% cash-back.
The American Express Blue Cash Preferred Card
This card offers six percent cash back at U.S. supermarkets (on up to $6000 per year in spending), three percent cash back at U.S. gas stations and select department stores, and one percent cash back on everything else. There’s a $95 annual fee, but it may be worth it for avid supermarket shoppers.
The Blue Cash Preferred Card from American Express is one of the only cash-back cards we think is worth an annual fee, especially for modern families. This card’s excellent rewards on everyday purchases can help you maximize all of your most frequent spending — from dining into at-home entertainment to the expenses that come with your daily commute.
The American Express Blue Cash Preferred card is an excellent choice if you spend a lot of money at the grocery store – especially since there are no limits to how much cash-back you can earn. However, remember that the APR can be pretty high if you carry a balance from month to month.
The Bank of America Cash Rewards Card
This card offers tiered rewards, giving you two percent cash back on groceries and wholesale club purchases (up to $500 per quarter) and three percent cash back on gas (up to $2000 per quarter). You’ll also earn one percent cash back on all other purchases. There’s a $0 annual fee, but you must have a Bank of America checking or savings account to qualify.
The Bank of America, Cash Rewards card is an excellent choice if you want to earn more rewards in specific categories like groceries and gas. Just be sure you can meet the minimum spending requirements to qualify for the bonus rewards – and that you’re comfortable paying the card’s APR if you carry a balance from month to month.
The Discover it Cash Back Card.
This card offers five percent cash-back in rotating categories each quarter (on up to $1500 in spending) and one percent cash back on everything else. There’s no annual fee, and like the Bank of America Cash Rewards card, you must have a Discover checking or savings account to qualify. Earn cash rewards without keeping track of rotating categories with the Discover it® Cash Back.
The Discover it Cash Back card doesn’t require an annual fee, and it has an introductory 0% APR on purchases, and balance transfers 15 months from account opening. After that, there’s a variable APR of 11.99% – 22.99%. In addition, foreign transaction fees are waived, and you can get your cash back as a direct deposit to your account, a check, or through PayPal.
The Discover it Cash Back card is an excellent choice to earn more rewards in specific categories. Just be sure to activate the bonus categories each quarter, and make sure you’re comfortable paying the card’s APR if you carry a balance from month to month.
There are plenty of excellent cash-back credit cards available right now – it just takes a little bit of research to find the one that best fits your needs. So don’t wait any longer! Instead, start comparing cards and see which one gives you the biggest bang for your buck.